[71] The volume of new enterprises amounted to 580 billion tenge. In 2000, Kazakhstan produced 35,252,000 metric tons of oil (700,000 barrels per day), a 17.4% increase over 1999's 30,025,000 tons. [71], In June 2015 – June 2016 the total number of enterprises owned by foreign investors in Kazakhstan increased by 2.3 percent and reached 9,000. Kazakhstan is a leading producer of many mineral commodities, including salt, uranium, ferrochrome, titanium sponge, cadmium, potassium, magnesium, rhenium, copper, bauxite, gallium and zinc. As of January 1, 2019, the stock of foreign direct investment in Kazakhstan totaled USD 160.4 billion, including USD 31.2 billion from the United States. The new Kazakh government has introduced economic reforms, greatly expanding the private market. The Netherlands invested $7.3 billion in Kazakhstan (30.2%), followed by the USA — $5.5 billion (23.0%) and Switzerland — $2.2 billion. [102] During that period the initiative will be focused on three major areas, notably agribusiness, machinery building and production of construction materials, and is to be further extended to other industries. The Ministry of Finance of the Republic of Kazakhstan started issuing licenses for gambling activity in 1999. [113][clarification needed]. Agriculture, construction, and manufacturing all saw increases in production in the first eight months of the year. Kazakhstan plans to raise this indicator to 50% by 2050. Kazakhstan, the world's largest landlocked country, is located mostly in Central Asia, with a small section in easternmost Europe. In 2015 the country ranked … This page has economic forecasts for Kazakhstan including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Kazakhstan economy. Greater social spending boosted household incomes and, with government support to relieve the debt burden of low-income households, sustained real consumption growth. [43], Kazakhstan is the leading country in the world for uranium production volumes with 35% of global production,[44] and it has the world's second biggest uranium reserves after Australia.[45]. Kazakhstan’s economic freedom score is 69.6, making its economy the 39th freest in the 2020 Index. Read more. In 2018, the income of gambling companies in Kazakhstan amounted to 19.5 billion tenge. Kazakhstan was ranked 36th in the Ease of Doing Business report released by the World Bank Group in 2018. [25] Kazakhstan scored 31 points out of 100 in Transparency International's 2018 edition of the Corruption Perceptions Index, indicating high levels of corruption. The first satellite that was sent into space, Sputnik 1, … [75], In mid-2016 a group of companies led by Chevron announced a $36.8 billion investment in Kazakhstan's Tengiz oil field. Around 9,400 small telecom companies are currently registered in the country. Read more. Kazakhstan Area and Population Density. Global economic growth is expected to improve slightly in 2020, but worse-than-expected growth in the European Union (EU), China, and Russia could rattle demand and the prices of commodities relevant to Kazakhstan’s exports. Kazakhstan gdp per capita for 2018 was $9,813, a 6.11% increase from 2017. [72], As of the beginning of 2016, the World Bank invested over $6.8 billion in Kazakhstan since 1992. [63], The Government of Kazakhstan has been supporting Kazakhstani exporters operating in foreign markets through their QazTrade incubator. In 2000, production reached 11.5 km³ of natural gas, up from 8.2 km³ in 1999. Kazakhstan's economic future is linked to oil and gas development. [49] Unfortunately the industry experienced a decline despite high hopes, with sales dwindling to only 46,000 in 2016. The Ministry also reported that there were 200 investment projects in country worth more than $40 billion. The strategy also identified 27 countries as the most important sources investments. Early presidential elections were held in Kazakhstan on 9 June 2019 following the resignation of long-term president Nursultan Nazarbayev. [104], The Kazakh Government provides extensive support to businesses, especially SME's. The winter 2019 edition of the biannual Kazakhstan Economic Update outlines the economic situation in the country, as well as the medium-term development prospects. In 2006, extremely high GDP growth had been sustained, and grew by 10.6%. [102] 2015 is expected to be a pilot period of the program. Kazakhstan gdp per capita for 2017 was $9,248, a 19.87% increase from 2016. This is the main goal of privatization that is expected to decrease the share of public property to 15% of GDP. The economic situation is relatively good and growing (3.9% in 2017) despite a financial sector affected by the financial crisis. [53] The Fostering Productive Innovation Project aims to improve the country in areas that are able to foster and support technological innovation. Aside from a small portion of the southwestern border that touches the Caspian Sea, the country is otherwise landlocked and borders Kyrgyzstan, Uzbekistan, and Russia.Calculated with the 2019 population of 18,589,667, Kazakhstan … [79] The gross inflow of foreign direct investment in 2016 grew by 40% compared to 2015 and surpassed the previous record of 2008. The country also produces and exports oil and gas in hundreds of thousands of metric tons. [53], According to A.T. Kearney's 2015 Global Retail Development Index, Kazakhstan ranked 13 out of 30. To learn more about cookies, click here. Imports from EAEU countries grew by 24.1%. By ... By The Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan, United Nations Children’s Fund. The mountains in the south are important for apples and walnuts; both species grow wild there. In 2020 Kazakhstan will become a country that came out of the world crisis stronger and more competitive, with diversified economy and population actively involved in new economy. [88], 13 Kazakhstan's regions out of 14 saw investment growth in 2020, despite the COVID-19 pandemic. The development of SME's is an integral part of Kazakhstan's Business Road Map 2020 state programme. According to the Minister of National Economy of Kazakhstan, in nine months of 2016 the GDP growth reached 0.4%. Kazakhstan's economy turned downward in 1998 with a 2.5% decline in GDP growth due to slumping oil prices and the August financial crisis in Russia. Press Release: Kazakhstan’s Economic Growth to Moderate in 2020, Says World Bank (December 18, 2019), Global data and statistics, research and publications, and topics in poverty and development, Environmental and Social Policies for Projects, Kazakhstan Economic Update: Sustaining Growth Momentum. The breakup of the USSR and the collapse of demand for Kazakhstan's traditional heavy industry products have resulted in a sharp decline of the economy since 1991, with the steepest annual decline occurring in 1994. Kazakhstan's Foreign Ministry building in Astana in December 2017. [41], In the first seven months of 2020, Kazakhstan exported significantly more goods than the previous year, including a seven-fold increase in automobile exports. Kazakhstan gdp per capita for 2019 was $9,812, a 0% increase from 2018. Based on the average exchange rate for 2019, the Kazakhstani tenge depreciated by -72.6% against the US dollar since 2015 and declined by -11.4% from 2018 to 2019. Learn how and when to remove this template message, Karachaganak natural gas and gas condensate field, "World Economic Outlook Database, April 2019", "World Economic Outlook Database, October 2019", "World Economic Outlook Database, April 2020", "Poverty headcount ratio at national poverty lines (% of population)", "Europe Central Asia Economic Update, Spring 2020 : Fighting COVID-19", "Inequality-adjusted Human Development Index (IHDI)", "Employment to population ratio, 15+, total (%) (modeled ILO estimate) – Kazakhstan", "Kazakhstan's foreign trade turnover reaches US$96 billion", "How Fitch, Moody's and S&P rate each country's credit rating", https://www.researchgate.net/publication/299731455, Kazakhs battle to stave off chill blowing in from Russian steppe, "Corruption Perceptions Index 2018 Executive Summary p. 3", "World Bank Vice President Visits Kazakhstan, Discusses 25 Year Partnership and New Opportunities to Benefit People", https://www.researchgate.net/publication/297675776, "2018 Economic Freedom Index: Kazakhstan", "Report for Selected Countries and Subjects", "The Kazakhstan's GDP growth in the first quarter of 2014", "$2.5 billion will be allocated by the World Bank for the diversification of the Kazakhstans' economy", "Kazakhstan Shows Economic Growth in Key Sectors, President Tells Officials", "0.4% GDP growth observed in Kazakhstan since Jan 2016", "Kazakh Government to Update Strategic Development Plan For 2025, Liberalize Regulations on Businesses", "Real Sector of Kazakh Economy Has Continuous Positive Growth, Says Economy Minister", "Kazakh Economy Records Growth in Real Sector, Says Economy Minister", "Uranium in Kazakhstan – Nuclear Power in Kazakhstan", "USGS Minerals Information: Europe and Central Eurasia", "Production of Toyota Fortuner kicks off in Kostanay", "Focus2move| Kazakhstan Automotive Industry Outlook 2017–2022", "GE Transportation acquires 50% stake in Lokomotiv Kurastyru Zauyty", "World Bank finances innovation in Kazakhstan", "Global Retail: Expansion at a Crossroads", "Kazakhstan follows China, India and Malaysia in Offering Potential for Retailers", "Kazakhstan Plans to Ramp Up Investment into Economy, Build High Value Industry", "N.D. Companies To Attend Trade Mission To Kazakhstan, Ukraine And Russia", "Chart: High-Tech Exports Gaining Ground in Kazakhstan", "China, Kazakhstan Sign $23.6 Billion in Deals", "Kazakhstan's foreign trade turnover rises by 19.7% in 2018", "QazTrade Launches New Program to Support Local Kazakh Exporters Reach Foreign Markets", "National investment strategy seeks 26% foreign investment increase in five years", "Kazakhstan's economic diplomacy: on solid footing and with clear goals in mind", "OECD Investment Policy Reviews: Kazakhstan 2017", "Kazakhstan Investment Climate Statement 2015", "Kazakhstan attracted $16 billion to the manufacturing industry", "Kazakhstan remains attractive for foreign investors", "Kazakhstan to ratify 3 new joint projects with WB in 2016", "Investments and Development Ministry attracted over $200 bln investments since 2005 – Issekeshev", "Kazakhstan launches proactive policy to attract investment", "Chevron Drives Oil Companies and Kazakhstan to Boost Oil Production in a Major Way", "Kazakhstan Attracts $2.7 Billion in FDI in Q1", "Kazakh Economy Experiences Inflow of Foreign Investments", "Kazakh FM Reports on 2016 Results: UNSC Membership, Attracting Investment Major Achievements", "Number of foreign companies in Kazakhstan increases 25 percent in the past year", "Kazakhstan attracts record amount of foreign investment in 2016 – The Astana Times", "EIB to provide €200 mln loan to KazAgro", "Kazakhstan attracts $330 billion FDI since 1991", "Kazakhstan targets to invite USD 34 bln of investments by 2025", "Investment opportunities in Kazakhstan: which sectors are most attractive to foreign investors? [38], In 2016 Kazakhstan's economy started to recover from the crisis caused by low oil prices and the tenge devaluation. Originally scheduled for 2020, seven candidates were registered to participate in the elections, including incumbent president Kassym-Jomart Tokayev, who had assumed the presidency three months before the elections following the resignation of Nazarbayev. Recently, the economy expanded, amid a slacking external environment. An increase in fiscal spending is expected to increase the government non-oil budget deficit to about 8.6 percent of GDP in 2019, higher than 7.6 percent last year. [86], The top five countries investing the most into the economy of Kazakhstan remained unchanged in 2019. According to an EIU forecast, real GDP growth will be 3.2–3.9 percent in 2019. Credit ratings Agency Rating Outlook Date of change Moody’s Baa3 Stable 16 October 2018 S&P BBB‑ Stable 11 March 2019 Fitch BBB Stable 22 March 2019 Kazakhstan in figures [60], The percentage of high-tech exports (as a share of manufactured exports) from Kazakhstan has grown from just 4.46% in 1995 to 37.17% in 2014. [67] In 2017 Kazakhstan was invited by OECD to become Adherent to the OECD Declaration on International Investment and Multinational Enterprises. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. [31], The following table shows the main economic indicators in 1980–2017. It exported 28,883,000 tons of oil in 2000, up 38.8% from 20,813,000 tons in 1999. The Heritage Foundation, a Washington DC – based research center, ranked Kazakhstan 41st in its Index of Economic Freedom 2018. Kazakhstan entered a recession in 2020 caused by lower commodity prices, a cut in oil production, and Covid-19-related disruption of domestic economic activity. As of September 2016, foreign investments in the Kazakh economy totaled $5.7 billion, which is 4,8% more than during the same period of the previous year. [99], Special Economic Zone (SEZ) is a part of Kazakhstan's territory, which has a special legal regime, with all the necessary infrastructure, to carry out activities in priority activities.[100]. The economy of Kazakhstan is the largest in Central Asia in both absolute and per capita terms, but the currency saw a sharp depreciation between 2013 and 2016. [69] Other measures include a refund on capital investments of up to 30 percent once a production facility is in operation. Manufacturing and trade were second and third most attractive sectors for investors. Download full text (PDF) — Kazakhstan Economic Update: Sustaining Growth Momentum. After adopting Law on public – private partnership that extends the use of the mechanism and revising standards of intellectual property protection and the rules of attracting foreign labor, Kazakhstan started a second review of the OECD in 2016. Global economic growth appears to have slowed to a projected 2.6 percent in 2019, constrained by subdued international trade and investments. The visa-free entry is expected to increase cooperation with investors and businesses of these countries. This site uses cookies to optimize functionality and give you the best possible experience. NUR-SULTAN – Good news to mark the 30th Anniversary of Kazakh Independence. February 16, 2021. The weak environment in global trade and lower oil prices have negatively affected Kazakhstan’s exports and edged up the current account deficit to 2.4 percent of GDP. February 12, 2021. Kazakhstan’s economy in 2019 is expected to grow at a modest rate. $3.5 billion of FDI was directed into the manufacturing industry, while trade attracted $3 billion in 2019. High growth of investment was in the construction sector, specifically in Turkestan and Zhambyl regions as well as Shymkent city. Kazakh Invest is a one-stop shop for investors that facilitates investment projects' implementation process from an idea to implementation, as well as ensures aftercare services. The country improved its position by 3 points, from 28 to 25, in the 2020 ranking compared to the previous year. 8,691 foreign companies operating in the Kazakhstan are small businesses. The corporate income tax rate dropped from 30% to 20%. Current GDP per capita shrank by 26% in the Nineties. The World Bank Group works in every major area of development. [26], The World Bank Vice President for Europe and Central Asia, Cyril Muller, visited Astana (now known as Nur-Sultan) in January 2017, where he praised the country's progress made during the 25-year partnership with the World Bank. As increase in domestic demand widened the current account deficit and pushed up inflation; however, the National Bank of Kazakhstan’s (NBK’s) move to control inflation helped improve macroeconomic stability. [91] The first agreement that was concluded via the portal was between Kaz Solar 50 and the German company Solarnet Investment GmbH for a renewable energy project worth 5 billion tenge. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Nonetheless, this was lower than 4.1% a year earlier, with higher oil revenues supporting growth during the period. [33], Kazakhstan's real GDP growth was projected to reach 4.3% in 2014, the main driving force of the economy in Kazakhstan in 2014 is the consumer sector; the consumption in Kazakhstan is mainly boosted by the retail lending. Public administration reform and its implications for foreign petroleum companies in Kazakhstan. [105], The country experienced a slowdown in economic growth from 2014 sparked by falling oil prices and the effects of the Ukrainian crisis[21] The country devalued its currency by 19% in February 2014. Kazakhstan economic growth for 2016 was $137.28B, a 25.55% decline from 2015. [48] The expected annual output makes around 3,000 cars. But, to benefit from these opportunities, Kazakhstan needs further cross-cutting reforms such as improvement in transport logistics, trade facilitation, and the functioning of factor markets (finance, land, and labor). Kazakhstan sent the first satellite into space. The depth of the country’s economic hardships were highlighted in a poll released by Bloomberg on July 2, which placed Kazakhstan in the world’s top-10 worst performing economies as a … Kazakhstan is ranked 11th among 43 countries in the Asia–Pacific region, and its overall score is above the regional and world averages. [87], Noteworthy that Kazakhstan's gross inflow of FDI increased 15.8 percent per year in 2018 and remained at the level of $24 billion from 2019, even though world economies saw a decrease in investment during that time period. The Ministry for Investment and Development works with Ministry of Foreign Affairs to develop individual plans of actions for each country. A bright spot in 1999 was the recovery of international petroleum prices, which, combined with a well-timed tenge devaluation and a bumper grain harvest, pulled the economy out of recession. [51], GE Transportation acquired 50% stake in Lokomotiv Kurastyru Zauyty in a joint venture with Kazakhstan's national railway company Temir Zholy. In 2019, the share of … Sectors of economy that experienced the highest growth included construction (6.9%), agriculture (4.9%), and transport sector (4.0%). Kazakhstan's industrial sector rests on the extraction and processing of these natural resources. Meanwhile, investments in residentials supported business investment and offset the decline in net exports. Kazakhstan is reorienting its foreign policy at the start of 2019 with the aim of bolstering its economy… [65], In order to achieve the 26% growth of FDI, Kazakhstan executes economic diplomacy. (Rating action commentary, 22 March 2019) Kazakhstan’s GDP totaled KZT 59,614 billion in 2018. This forward-thinking approach has continued into the present – in 2014 the World Bank approved a loan of $88m to encourage technological innovation, diversifying Kazakhstan’s economy. Its overall score has increased by 0.1 point, still being only "moderately free" with significant improvements in investment freedom and government integrity offsetting steep declines in fiscal health and monetary freedom. In 2020 we forecast an economic contraction of 2.2%, driven by a slump in domestic demand and oil prices. In late March 2015 the two countries signed 33 deals worth $23.6 billion. More than 50% of FDI in Kazakhstan was directed from the European Union (EU). Growth is expected to ease in 2020, with greater risks from the external environment and vulnerability to shocks. China outran the Russian Federation in terms of investments and took 4th place with $1.7 billion (7.0%), while the Russian Federation closed the top five with $1.4 billion (5.8%) invested in Kazakhstan.